USD/JPY technical analysis: The pair pulled away from the top of a technical pattern

• USD/JPY pulls away from the top of the rising wedge formation.
• Today the pair is 0.24% lower and one of the worst performing pairs.

Yen Themes

In a text book rising wedge formation, USD/JPY pulled away from the top of the pattern after a bout of risk aversion.

JPY has performed pretty well against most of the other major currencies overnight.

In fairness Yen needed some correction after underperforming for such a long time in relative terms.

US President Trump has not yet confirmed the rollback of the tarffs in order to get the "phase one" deal signed.

Technical Themes

On the daily chart, 2 sessions ago there was a doji candle at the top of the pattern and it seemed like momentum was wearing thin.

The only issue was pairs like USD/CHF had already confirmed technical breakouts.

Now it seems, the rejection has been completed as today the pair is trading 0.24% lower.

In terms of where USD/JPY may find support, the area around 108.50 looks to be firm.

It was at this point that the market sold off in both 19th September and 1st October. 

Additional Levels